Adani Ports Q2 Results: Revenue, Profit Dip Sequentially On Lower Cargo Volumes

Adani Ports And Special Economic Zone Ltd.’s profit fell missing estimates in the second quarter as port cargo volumes declined.

Net profit of India’s largest private port operator fell 27% over the preceding quarter to Rs 951.7 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 1,351-crore consensus of analyst estimates tracked by Bloomberg.

Revenue fell 22% sequentially to Rs 3,532.4 crore, against the estimated Rs 3,886 crore. Revenue from the ports business fell 24% to Rs 3,228.5 crore, the company said.

Adani Ports’ cargo volumes in the reported quarter declined 9.7% over the preceding three months to 68.3 million metric tonnes, the filing said.

Highlights (QoQ)

• Operating profit rose 1.6% to Rs 2,268 crore, compared with the Rs 2,461-crore forecast.

• Operating margin stood at 64.2% from 49%. Analysts had pegged the metric at 63.3%.

“Our strategy of geographic expansion with a focus on higher-growth regions, balancing cargo mix, expansion in the logistics business, particularly rail transportation, and foray into Grade-A warehousing segment reflects our move towards a ‘Transport Utility’ business model and is resulting in a continuous increase in our market share," said Karan Adani, chief executive officer of Adani Ports & SEZ, in the filing.

Outlook

• The company has maintained its cargo volume guidance of 350-360 MMT in FY22.

• Consolidated revenue is pegged at Rs 18,000-18,800 crore for FY22.

• Logistics revenue seen to be around Rs 1,000-1,200 crore, a growth of 25%.

• It expects capex of around Rs 3,100-3,500 crore, including maintenance capex of Rs 500 crore.

• The company has guided for free cash from operations to be around Rs 7,100-7,600 crore in FY22.